US Fed Meeting Live Updates: Powell-led FOMC slashes interest rates by 25 bps after Trump victory

US Fed Meeting Live: Oil rises one per cent as investors digest US election fallout

Oil prices rose nearly one per cent on Thursday as the market weighed how President-elect Donald Trump’s policies would affect supplies and as drillers cut output while bracing for Hurricane Rafael. A strong dollar and lower crude imports in China limited gains.

On Wednesday, the election of Republican former President Trump initially triggered a sell-off that pushed oil down more than $2 as the dollar rallied. Crude prices later pared losses to settle down by less than one per cent.

On Thursday, Brent crude oil futures settled up 71 cents, or 0.95 per cent, at $75.63 a barrel. US West Texas Intermediate (WTI) crude rose 67 cents, or 0.93 per cent, to $72.36.

US Fed Meeting Live: Fed’s Powell says US economy could perform even better next year

Federal Reserve Chair Jerome Powell said on Thursday that the US economy is performing remarkably well with strong growth, a strong labor market and inflation coming down, and the outlook from business people is that it could perform even better in 2025.

Powell told a news conference after the Fed cut rates again that the US economy was outperforming global peers and was weathering geopolitical risks, and that business people were optimistic about the outlook. “If anything, people feel next year — I’ve heard this from several people — that next year could even be stronger than this year,” Powell said.

US Fed Meeting Live: Fed’s Powell says he will not quit even if asked by Trump

Federal Reserve Chair Jerome Powell said on Thursday he would not step down if ordered to by incoming President elect Donald Trump. Asked if he would resign if asked, Powell said “no” at the press conference following the Federal Reserve policy meeting.

Powell had fractious relations with Trump in his first term, and there have been broad expectations the returning president might try to remove Powell. The Fed chair said an attempt to oust him before his term was over is “not permitted under the law.”

US Fed Meeting Live: Pace and destination of monetary policy can change, says Powell

Federal Reserve Chair Jerome Powell said on Thursday that no decision has been made on what sort of policy action the central bank will take in December.

Amid uncertainty over the outlook, “we are prepared to adjust our assessment of the appropriate pace and destination” for monetary policy amid uncertainty, Powell said at his press conference after the Federal Reserve rate policy meeting.

US Fed Meeting Live: Fed’s Powell says some downside risks to US economy have diminished

US Federal Reserve Chair Jerome Powell said on Thursday some of the downside risks to the economy have diminished amid stronger economic data, including retail sales and revisions to the National Income and Product Accounts (NIPA) data.

“So overall, though, I think you take away a sense of some of the downside risks to economic activity having been diminished, with the NIPA revisions in particular,” Powell told a news conference. “And so overall, feeling good about economic activity and I think we would factor that in” to future policy decisions.

US Fed Meeting Live: Fed’s Powell says it is hard to provide firm rate guidance now

Federal Reserve Chair Jerome Powell said on Thursday that uncertainty over the outlook limits what the central bank can say about the outlook for monetary policy. Although the Fed has gained the confidence to lower rates, “we don’t think it’s a good time to be doing a lot of forward guidance,” he said in a press conference following the latest Federal Open Market Committee meeting.

US Fed Meeting Live: How lower interest rates benefits the economy

Broader interest rates have risen because investors are anticipating higher inflation, larger federal budget deficits, and faster economic growth under a President-elect Trump. Trump’s plan to impose at least a 10 per cent tariff on all imports, as well as significantly higher taxes on Chinese goods, and to carry out a mass deportation of undocumented immigrants would almost certainly boost inflation. 

This would make it less likely that the Fed would continue cutting its key rate. Annual inflation as measured by the central bank’s preferred gauge fell to 2.1 per cent in September. Rate cuts by the Fed typically lead to lower borrowing costs for consumers and businesses over time. Yet this time, mortgage rates fell in anticipation of rate cuts but have since bounced back up as the economy has grown briskly, fueled by consumer spending. 

High borrowing costs not only for mortgages but also for car loans and other major purchases, even as the Fed is reducing its benchmark rate, has set up a potential challenge for the central bank: Its effort to support the economy by lowering borrowing costs may not bear fruit if investors are acting to boost longer-term borrowing rates.

The economy grew at a solid annual rate just below three per cent over the past six months, while consumer spending — fueled by higher-income shoppers — rose strongly in the July-September quarter.

But companies have scaled back hiring, with many people who are out of work struggling to find jobs. Powell has suggested that the Fed is reducing its key rate in part to bolster the job market. If economic growth continues at a healthy clip and inflation climbs again, though, the central bank will come under growing pressure to slow or stop its rate cuts.

US Fed Meeting Live: Wall Street adds to its big gains after the Fed cuts interest rates

US stocks are ticking higher Thursday after the Federal Reserve cut interest rates for a second straight time, just as investors had expected. The S&P 500 was up 0.7 per cent in afternoon trading as momentum slowed from its surge a day before following Donald Trump’s presidential victory. 

The Dow Jones Industrial Average was up 3 points, or less than 0.1 per cent, as of 2:50 p.m. Eastern time, and the Nasdaq composite was 1.5 per cent higher. The Fed’s announcement that it was easing its main interest rate caused few ripples in the market because even the size of it was so well anticipated by investors.

The central bank began cutting rates in September and indicated more easing was likely to come, as it focuses more on keeping the job market humming after helping get inflation nearly down to its two per cent target. What’s less certain in the minds of investors is how much Trump’s victory may complicate things for the Fed.

US Fed Meeting Live: US election will have no near-term effect on Fed policy: Powell

The US presidential election outcome will have “no effects” on central bank policy decisions in the near-term, Federal Reserve Chair Jerome Powell told reporters Thursday, after Republican Donald Trump’s victory at the polls.

“We don’t know what the timing and substance of any policy changes will be. We therefore don’t know what the effects on the economy would be,” he added after the Fed unveiled its rate decision. “We don’t guess, we don’t speculate, and we don’t assume.”

US Fed Meeting Live: Gold holds firm after US Fed rate cut, softer dollar

Gold prices rose more than one per cent on Thursday, helped by a retreat in the US dollar, while the Federal Reserve cut interest rates by a quarter of a percentage point as widely expected. Spot gold was up 1.2 per cent at $2,691.36 per ounce, after dropping to a three-week low on Wednesday. US gold futures settled 1.1 per cent higher at $2,705.80. Elsewhere, spot silver rose 1.8 per cent to $31.71 per ounce, platinum gained 0.6 per cent to $992.65 and palladium shed 1.3 per cent to $1,021.25.

US Fed Meeting Live: US dollar slightly pares losses, but down on day after Fed rate cut

The US dollar slightly pared losses on Thursday after the Federal Reserve cut interest rates by 25 basis points, as was widely expected, with policymakers taking note of a job market that has “generally eased” while inflation continues to move towards the US central bank’s two per cent target. The dollar index was last down 0.49 per cent at 104.59, while the euro gained 0.44 per cent to $1.0775. The greenback was down 0.85 per cent at 153.31 Japanese yen.

US Fed Meeting Live: Fed policymakers note easing of labour market in US

“Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has increased but remains low. Inflation has progressed toward the Committee’s two per cent objective but remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at two per cent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate,” said the FOMC in its statement.

US Fed Meeting Live: Powell-led FOMC slashed the key interest rate by 25 bps

The US Federal Reserve shrugged off political uncertainty in Washington and proceeded with a quarter-point rate cut Thursday, further easing monetary policy as inflation continues to cool. Fed Policymakers voted unanimously to lower the central bank’s key lending rate to between 4.50 per cent and 4.75 per cent, the Fed announced in a statement.

“Labor market conditions have generally eased” since earlier in the year, the Fed said, noting ongoing progress to bring inflation down toward the bank’s long-term target of two per cent. The rate cut builds on the Fed’s action in September, when it kicked off its easing cycle with a large reduction of half a percentage-point, and penciled in additional cuts for this year.

US Fed Meeting Live: European stocks bounce back as investor focus turns to US Fed, BOE

European stocks rebounded on Thursday as traders turned their focus to monetary policy ahead of the Federal Reserve’s widely expected interest-rate cut. The Stoxx Europe 600 Index was up 0.7 per cent in Paris. An inflation warning by the Bank of England sent London’s FTSE 100 lower. 

In European markets, automakers climbed, and miners outperformed. Healthcare and telecom shares lagged. UK equities slipped 0.1 per cent after the BoE cut borrowing costs for the second time this year. The central bank stopped short of signalling faster easing, warning that the budget could drive up inflation by as much as half a percentage point.

In Germany, the blue-chip DAX Index was up 1.4 per cent after Chancellor Olaf Scholz called for a snap election after divisions over reviving the lacklustre economy triggered the breakup of his fractious three-party ruling coalition. Data showed Germany’s industrial production falling more than economists expected in September.

US Fed Meeting Live: US stocks rise after bond yields sink in Fed countdown

US stocks hit fresh all-time highs, Treasuries rebounded, and the dollar fell the most since August. The US Federal Reserve is widely expected to lower interest rates on Thursday.  Equities extended their post-election rally, with the S&P 500 approaching the 6,000 milestone. 

Most major groups advanced, with Apple Inc. and Nvidia Corp. leading gains in megacaps.  Lyft Inc. jumped 24 per cent after the ride-hailing company gave a bullish outlook. A closely watched gauge of banks dropped two per cent after gaining over 10 per cent in the previous session. 

JPMorgan Chase & Co. slid four per cent after an analyst downgrade. US policymakers have already communicated a desire to proceed with a more gradual pace of rate cuts after September’s half-point reduction. Economists expect a quarter-point move on Thursday, followed by another in December.

US Fed Meeting Live: Jerome Powell to address press conference after FOMC statement

After the rate decision is announced, Fed Chair Jerome Powell will hold a press conference, during which he is likely to field questions about what the election means for Fed policy and his own job at the top of the institution.

Donald Trump has repeatedly accused Powell — whom he first appointed to run the US central bank — of working to favour the Democrats and has suggested he would look to replace him once his term expires in 2026.

Trump has also said he would like “at least” a say over setting the Fed’s interest rate, which would go against the Fed’s current mandate to act independently to tackle inflation and unemployment.

US Fed Meeting Live: When & where to watch Fed policy decision?

The US Fed is slated to announce its decision at 2 pm EST on November 7 or 12.30 am IST on November 8. The announcement will be followed by a press conference from Fed chair Jerome Powell at 2.30 pm EST (1 am IST). 

You can watch the announcement live on the Fed’s website or YouTube channel. The next and the last Federal Reserve meeting for the calendar year 2024 is scheduled to take place on December 17-18.

The Fed is widely expected to reduce its benchmark policy rate by 25 bps on Thursday to a range between 4.5 per cent and 4.75 per cent. However, the outlook for further rate cuts gets murkier following the re-election of Donald Trump as the next President of the United States as some of the new policies by the Republican leader are expected to reverse or stall the slowdown in inflation.

US Fed Meeting Live: Donald Trump likely to allow Fed Chair Powell to serve remainder of his term

US President-elect Donald Trump is likely to allow Jerome Powell to serve the remainder of his term as the Federal Reserve chair, CNN reported on Thursday, citing a senior adviser to Trump.

While Trump could change his mind, he and his economic team’s present view is that Powell should remain atop the central bank until Powell’s term expires in May 2026, CNN reported, citing the unidentified senior adviser.

US Fed Meeting Live: Gold regains ground on dollar’s retreat as markets await Fed rate decision

Gold prices rebounded from a three-week low on Thursday on the back of a weaker dollar. Spot gold was up 1.5 per cent at $2,698.39 per ounce. US gold futures rose one per cent to $2,706.00. Gold is often valued as a hedge against inflation, but rising interest rates diminish its allure, as it is a non-yielding asset.

The dollar index surged to a four-month high after Republican former President Donald Trump’s win in Tuesday’s presidential election, but erased the gains on Thursday, falling around 0.7 per cent. A stronger dollar makes bullion less attractive for overseas buyers.

US Fed Meeting Live: Impact of Trump’s win on financial markets

Prashant Tandon, Executive Director, Investment Advisory, Waterfield Advisors said,  “With the Republicans also retaining control of the Senate there is a clear red wave on Capitol Hill. A trump sweep will ensure that macro volatility will remain elevated for the foreseeable future. In terms of impact on financial markets, there is likely to be a risk-on sentiment as an immediate knee jerk reaction to the election result.

– Equities are expected to rise on hopes of tax cuts to individuals and corporates

– Strong Dollar

– Higher treasury yields

– Lower commodities especially crude oil on hopes of end of middle-east conflict”

US Fed Meeting Live: How Donald Trump could influence The Fed

The US Fed is expected to cut interest rates again Thursday – this time by 25 basis points – amid a moderating inflation rate and a softening labor market. But the return of Donald Trump to the White House and concerns that he might seek significant influence over the central banks’ policy decisions that will be the main focus, warns Nigel Green of deVere Group

Markets have fully priced-in another rate cut. He says: “There are fears that Trump is likely to reignite his campaign to influence the Federal Reserve’s decisions moving forward. “He frequently criticized the Fed, particularly under Jerome Powell’s chairmanship, for not lowering interest rates more aggressively. In 2018 and 2019, he repeatedly voiced dissatisfaction, claiming that higher rates were a drag on the US economy and put the country at a competitive disadvantage in international markets.

“He even went as far as suggesting negative interest rates—a stance almost unheard of in the US. “With inflation cooling but still elevated, Trump may argue that lower rates are necessary to fuel economic growth, particularly in the lead-up to the 2026 midterms.”

The now President-Elect Trump appointed four of the seven current Fed Board governors during his previous term, including the controversial re-nomination of Jerome Powell. However, he also openly suggested firing Powell—a move he legally couldn’t enforce but used as leverage to influence Fed decisions. His strong preference for low-interest-rate advocates likely influenced his appointments, prioritizing growth and employment over strict inflation control.

“Should Powell remain at the Fed, Trump may again publicly challenge his decisions, possibly nominating governors who share his economic philosophy, with an eye on reducing Fed autonomy. He could also push for replacements more sympathetic to his economic policies if any positions open up,” notes the deVere Group CEO.

US Fed Meeting Live: US stocks in focus ahead of FOMC verdict

JPMorgan Chase fell four per cent, a day after banks decisively led the market on expectations that a stronger economy and lighter regulation from Washington would mean fatter profits. Smaller US stocks also lagged the market, with the Russell 2000 index down 0.2 per cent. 

A day before, it more than doubled the S&P 500’s gain on expectations that Trump’s America-First priorities would most benefit smaller, more domestically focused companies.

Lyft jumped 25.9 per cent after the ride-hailing app breezed past Wall Street’s sales and profit expectations for the latest quarter. Chip company Qualcomm climbed two per cent after likewise beating analysts’ profit forecasts. 

Match Group tumbled 18.7 per cent after the dating app brand missed revenue targets as its most popular app, Tinder, continued to underperform.

US Fed Meeting Live: Treasury rout pauses after Trump victory as focus turns to US Fed

A selloff in Treasuries stalled Thursday as investors’ attention turned from Donald Trump’s victory in the US presidential election to interest-rate decisions by major central banks, including the US Federal Reserve.

The yield on 30-year US bonds fell about five basis points to 4.56 per cent after a 17-basis-point surge Wednesday, the biggest since March 2020. UK debt rebounded from three days of losses as the Bank of England delivered an expected rate cut, while euro-area notes fell as investors digested news of snap elections in Germany.

Traders are looking to central bankers for clues on how Trump’s tax cut and tariff policies could alter their global growth and inflation outlook. Fed Chair Jerome Powell will hold a press conference after Thursday’s decision, which is expected to be a quarter-point rate cut.

US Fed Meeting Live: European shares rebound on tech boost; FTSE slips on BoE inflation warning

European stocks regained ground on Thursday, boosted by technology and resources shares, while Britain’s FTSE 100 dipped after the Bank of England cut interest rates but projected higher inflation following the new government’s first budget.

The pan-European STOXX 600 closed 0.7 per cent higher, powered by a 2.2 per cent bounce in the tech sector, recouping losses from the previous session. Autos also added 2.2 per cent after a more than two per cent decline on Wednesday.

The basic resources index supported gains, rising 3.9 per cent for its best day in six weeks following a rebound in base metal prices. The FTSE 100 was the only stock index among major European benchmarks that ended in the red, down 0.3 per cent.

The BoE said the government’s plans were likely to add almost half a percentage point to inflation at its peak in just over two years’ time and cause it to take a year longer to return sustainably to the central bank’s two per cent target.

US Fed Meeting Live: Equities rise as traders weigh Trump 2.0, rate cut prospects

Major stock markets mostly rose Thursday following Donald Trump’s election win that is set to see the returning president unveil US tax cuts and import tariffs. The dollar retreated after surging Wednesday on news of Trump’s win, while bitcoin came off record highs.

Wall Street stocks surged to all-time records Wednesday after it emerged the tycoon would return to the White House having beaten his Democratic rival, Kamala Harris. The S&P 500 and Nasdaq Composite continued rising Thursday, with investors looking towards the Federal Reserve interest rate announcement later in the day while the Dow wobbled.

Trump’s decisive win is expected to pave the way for a series of business-friendly measures such as tax cuts and deregulation, though analysts warn that such moves — along with the pledge to impose import duties — could relight inflation. The prospect of higher inflationary pressure could complicate matters for Fed boss Jerome Powell.

Frankfurt stocks rose by 1.7 per cent as the conservative opposition heaped pressure on Chancellor Olaf Scholz’s crisis-hit government to allow for speedy elections by calling a confidence vote next week rather than in 2025.

US Fed Meeting Live: President Biden speaks for first time since President-elect Trump’s election

‘The will of the people always prevails’. Addressing the nation, Biden said the electoral system is fair and can be trusted. He stated they must accept the choice that Americans made for competing US visions. President Biden said, “Setbacks are unavoidable, but giving up is unforgivable … The American experiment endures. We’re going to be okay, but we need to stay engaged. We need to keep going.”

“Yesterday, I spoke with President-elect Trump and congratulated him on his victory. “I assured him that I’d direct my entire administration to work with his team to ensure a peaceful and orderly transition,” he said.

Biden said, as Reuters quoted, “For over 200 years, America has carried out the greatest experiment in self-government in the history of the world. The people vote and choose their own leaders, and they do it peacefully. In a democracy, the will of the people always prevails. Yesterday, I spoke with President-elect Trump to congratulate him on his victory. 

I assured him that I would direct my entire administration to work with his team to ensure a peaceful and orderly transition. That’s what the American people deserve. Yesterday, I also spoke with Vice President Harris. She’s been a partner and a public servant. She gave her whole heart and effort, and she and her entire team should be proud of the campaign they ran. We accept the choice the country made…”

US Fed Meeting Live: US weekly jobless claims up slightly; unit labour costs stir inflation fears

The number of Americans filing new applications for unemployment benefits rose slightly last week, suggesting no material change in the labor market and reinforcing views that hurricanes and strikes had resulted in job growth almost stalling in October.

Though the labor market is easing, wage pressures are not showing a significant cooling, casting a shadow over the inflation and interest rate outlook. Unit labor costs increased at a solid clip in the third quarter, other data from the Labor Department showed on Thursday.

Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 221,000 for the week ended Nov. 2, the Labor Department said. Economists polled by Reuters had forecast 221,000 claims for the latest week.

Unadjusted claims rose 10,827 to 212,274 last week. They were boosted by a 4,278 jump in filings in California. Applications rose by 3,563 in Michigan and shot up 1,927 in Ohio, more than offsetting notable drops in Florida and Georgia.

US Fed Meeting Live: Fed set to cut interest rates again amid post-election uncertainty

US Federal Reserve officials are poised Thursday to reduce their key interest rate for a second straight time, responding to a steady slowdown of inflation pressures that exasperated many Americans and contributed to Donald Trump’s presidential election victory.

Yet the Fed’s future moves are now more uncertain in the aftermath of the election, given that Trump’s economic proposals have been widely flagged as potentially inflationary. His election has also raised the specter of meddling by the White House in the Fed’s policy decisions, with Trump having proclaimed that as president he should have a voice in the central bank’s interest rate decisions.

The Fed has long guarded its status as an independent institution able to make difficult decisions about borrowing rates, free from political interference. Yet during his previous term in the White House, Trump publicly attacked Chair Jerome Powell after the Fed raised rates to fight inflation, and he may do so again.

US Fed Meeting Live: Bitcoin catches a breath, crude oil slips ahead of FOMC

Central banks in Norway and Sweden also held meetings on Thursday, though they met markets expectations and did little to disrupt currency markets. Norges Bank at the hawkish end of the developed market spectrum kept rates unchanged at a 16-year high, and Sweden’s Riksbank cut by 50 bps.

Bitcoin caught its breath on Thursday, easing 0.3 per cent to $75,408, following its vault to a record high $76,499.99 overnight. Trump had vowed to make the United States “the crypto capital of the planet”. Gold added 1.5 per cent, following Wednesday’s more than three per cent tumble, to $2,698.14 an ounce. However, that was still not far from its recent record high of $2,790.15. 

Oil slipped, extending a sell-off triggered by the US presidential election, as a strong dollar and lower crude imports in China outweighed supply risks from a Trump presidency and output cuts caused by Hurricane Rafael. Brent crude oil futures fell 0.7 per cent to $74.42 per barrel. US West Texas Intermediate (WTI) crude shed 0.7 per cent to $71.19.

US Fed Meeting Live: TSX hits over two-week high ahead of Fed’s rate decision

Canada’s main stock index rose on Thursday, extending its rally from the previous session, ahead of the US Federal Reserve’s monetary policy decision. The Toronto Stock Exchange’s S&P/TSX composite index was up 95.13 points, or 0.39 per cent, at 24,732.58, its highest since October 21. The spotlight was on the US central bank’s rate decision, which is expected to result in a 25-basis-point cut, with markets also pricing in a similar move in December.

The top bank may have to navigate an uncertain economic terrain under a second Donald Trump administration, as proposed tariffs and immigration policies risk stoking inflation and hamper the path to lower rates. Canada, the world’s No. 4 crude oil producer, is especially vulnerable due to Trump’s proposed 10 per cent tariff on all imports.

Among sectors, the information technology rose 0.9 per cent to lead overall gains, supported by a 10.9 per cent climb in Lightspeed Commerce after the software maker beat second-quarter profit estimates.

US Fed Meeting Live: US yields drop as uncertainty eases with election outcome known

US Treasury yields fell on Thursday, after hitting multi-month highs the previous session, as investors paused selling government debt and squared up positions to take advantage of lower prices to get back into the market. US yields rise when bond prices fall. The market is also looking ahead to the Federal Reserve’s likely decision to cut interest rates by 25 basis points (bps) at the end of its two-day meeting later on Thursday.

Market players also reflected on Republican former President Donald Trump’s victory in the US presidential race that has fuelled worries of higher fiscal deficits under an economic plan that would stoke inflation through tariffs and entail increased issuance of Treasuries to help address the budget shortfall.Republicans also won control of the US Senate. Investors are still awaiting results in the House of Representatives, and Republican control would clear the path for Trump’s agenda.

US Fed Meeting Live: Rupee falls one paisa to fresh all-time low of 84.32 against US dollar

The rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar on Thursday, as weak domestic equities and sustained foreign fund outflows dented market sentiment. Forex traders said investors were also cautious ahead of the US Fed meeting outcome. Moreover, overnight gains in crude oil prices also weighed on the local unit.

However, a correction in the dollar index against major currencies helped the rupee and restrained the slide, they added. At the interbank foreign exchange, the rupee opened at 84.26 against the US dollar. During the session, the local currency touched a high of 84.26 and a low of 84.38. It finally settled at 84.32, a loss of just 1 paisa against its previous close.

US Fed Meeting Live: Treasury Rout Pauses After Trump Victory as Focus Turns to Fed

A seismic selloff in Treasuries stalled Thursday as investors’ attention turned from Donald Trump’s victory in the US presidential election to interest-rate decisions by major central banks including the Federal Reserve.

The yield on 30-year US bonds fell about four basis points to 4.57 per cent after a 17-basis-point surge Wednesday — the biggest since March 2020. UK debt rebounded from three days of losses as the Bank of England delivered an expected rate cut, while euro-area notes fell as investors digested news of snap elections in Germany.

Traders are looking to central bankers for clues on how Trump’s tax-cut and tariff policies could alter their outlook for global growth and inflation. Fed Chair Jerome Powell holds a press conference after Thursday’s decision, expected to be a quarter-point rate cut.

US Fed Meeting Live: Gold regains ground on dollar’s retreat as markets await Fed rate decision

Gold prices rebounded from a three-week low on Thursday on the back of a weaker dollar and as investors awaited the US Fed decision. Spot gold was up 1.3 per cent to $2,692.59 per ounce. US gold futures rose 0.9 per cent to $2,700.10.

The dollar index surged to a four-month high after Republican former President Donald Trump’s win in Tuesday’s presidential election, but erased the gains on Thursday, falling around 0.7 per cent. A stronger dollar makes bullion less attractive for overseas buyers.

Gold is often valued as a hedge against inflation, but rising interest rates diminish its allure, as it is a non-yielding asset. China’s central bank refrained from purchasing gold for its reserves for a sixth consecutive month in October, according to official data. Spot silver added 1.8 per cent to $31.72 per ounce, platinum gained 0.2 per cent to $988.85 and palladium shed 0.3 per cent to $1,032.14.

US Fed Meeting Live: US dollar slips before Fed rate decision

The dollar fell on Wednesday before the Federal Reserve is expected to cut rates by 25 basis points, while traders were also seen as closing out profitable bets on a Donald Trump presidency after his election victory on Tuesday.

Republicans also won the Senate majority, putting the party on track for a clean sweep that would allow it to make larger legislative changes. They are leading the race to win the House of Representatives, though this has yet to be decided.

Investors will focus on whether Fed Chair Jerome Powell makes any reference to the election swaying Fed policy in coming months at the conclusion of the US central bank’s two-day meeting later on Thursday.

US Fed Meeting Live: Wall Street extends rally from Trump victory, Fed decision on tap

Wall Street’s main indexes held on to their gains on Thursday in the run-up to the US  Federal Reserve’s interest-rate decision, extending a sharp rally sparked by Donald Trump’s stunning comeback as US president for a second time.

Traders have about fully priced in a 25-basis-point rate cut, but will keep a close watch on the central bank’s commentary for clues on the future path of monetary easing. Investor expectations that Trump would lower corporate taxes and loosen regulations had lifted all three major indexes in the previous session.

However, much would depend on the central bank’s rate-cut outlook. Traders have already trimmed their bets to just two rate cuts in 2025 on consistently robust economic data and after accounting for the chances of higher inflation stemming from Trump’s proposed tariffs and government spending.

Treasury yields are hovering near multi-month highs, though the benchmark 10-year yield eased slightly. Meanwhile, some of the Trump trades that surged after his sweeping victory gave back gains, with Trump Media & Technology dropping 16 per cent.

After hitting a record high on Wednesday, Financials lost 1.1 per cent, led by a 2.9 per cent slide in JPMorgan Chase, which also weighed on the Dow. The small cap Russell 2000 slipped 0.1 per cent, but was still trading around three-year highs it touched in the last session.

Information technology sector rose 1.1. per cent, while rate-sensitive industrials edged lower and energy lost 0.8 per cent. The Dow Jones Industrial Average rose 71.53 points, or 0.16 per cent, to 43,801.46, the S&P 500 gained 27.22 points, or 0.46 per cent, to 5,955.73 and the Nasdaq Composite gained 167.47 points, or 0.88 per cent, to 19,150.94.

Focus is also on whether Republicans could win control of both houses of Congress, making it easier for Trump’s policies to be enacted. Qualcomm shares jumped 1.7 per cent after the chipmaker forecast current-quarter results above estimates, while US-listed shares of chip designer Arm Holdings fell 3.1 per cent as its quarterly forecasts disappointed investors.

US Fed Meeting Live: Fed set to cut rates as Trump’s victory reshapes economic outlook

The Federal Reserve is expected to reduce its benchmark policy rate by a quarter of a percentage point at the end of its policy meeting on Thursday, a decision that may seem a footnote given the uncertain economic terrain the US central bank may soon be navigating under a second Trump administration.

Former President Donald Trump’s victory in Tuesday’s presidential election and the prospect that his fellow Republicans will control both houses of Congress in January puts in play policy changes from import tariffs to tax cuts to stifled immigration that could rewrite the outlook for economic growth and inflation that Fed policymakers had expected to face next year.

It may take months for the proposals to evolve and work through Congress even under full Republican control. For now, new economic data continue to work in the Fed’s favor. Data released on Thursday showed that initial unemployment claims remained low in the latest week and worker productivity jumped by a healthy 2.2 per cent in the third quarter, helping offset a 4.2 per cent rise in workers’ hourly compensation.

Fed officials have cited improved productivity as one of the factors that has improved their confidence in a continued decline in inflation. “This is the kind of result the Fed likes to see as it contemplates cutting rates,” wrote Carl Weinberg, chief economist for High Frequency Economics.

But with bond yields continuing their recent rise in the wake of Tuesday’s election results, investors now expect the Fed will end up cutting interest rates less than previously anticipated as it takes stock of a new economic regime that may mean bigger federal deficits, stronger growth, and higher inflation in the short run, and also come with longer-term risks.

US Fed Meeting Live: Wall Street mixed on slow momentum ahead of Fed’s decision

US stocks are mixed on Thursday ahead of the Federal Reserve’s announcement coming in the afternoon about what it will do with interest rates. The S&P 500 was up 0.4 per cent in early trading, though momentum slowed sharply from its surge a day before following Donald Trump’s presidential victory. The Dow Jones Industrial Average was down 62 points, or 0.1 per cent, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.7 per cent higher.

The market’s main event, though, is coming later in the day. Wall Street’s nearly consensus expectation is that the Fed will cut its main interest rate for a second straight time. The central bank began its rate-cutting campaign in September as it focuses more on keeping the job market humming after helping get inflation nearly down to its two per cent target.

US Fed Meeting Live: US unemployment rate

US hiring advanced at the slowest pace since 2020 in October, while the unemployment rate held at a low level in a month distorted by severe hurricanes and a major strike. Nonfarm payrolls increased by 12,000 last month, the smallest gain since December 2020. The US economy added 112,000 fewer jobs in August and September than previously reported.

The household survey from which the unemployment rate is derived found that 512,000 people reported they could not work in October, a record high for the month. About 1.4 million people who normally hold full-time positions said they could only work part-time because of the weather. That was also an all-time high for October compared to 129,000 last year.

The unemployment rate was 4.1 per cent, and hourly earnings remained firm in October 2024. Notably, a rise in the US unemployment rate to 4.3 per cent in July from 3.8 per cent in March 2024 was one of the catalysts for the US central bank’s supersized 50 bps rate cut in September.

US Fed Meeting Live: US Fed expected to look beyond Trump’s win and cut rates again

The US Federal Reserve is expected to announce a quarter-point interest rate cut this week. The Fed will shrug off the economic uncertainty raised by Donald Trump’s US election victory and continue easing borrowing costs, citing cooling inflation.

The Fed’s two-day rate meeting began in Washington on Wednesday, having been pushed back by a day because of US elections, the US central bank announced. Fed policymakers are expected to tune out the political noise and focus instead on the health of the US economy.

Their favored inflation gauge eased to 2.1 per cent in the 12 months to September — just above its long-run goal of two per cent — while economic growth has remained robust. The labor market has also remained resilient despite a sharp hiring slowdown last month due to adverse weather conditions and a labor strike.

US Fed Meeting Live: US Fed rate cut plans likely unchanged by Trump victory

The US Federal Reserve is widely expected to cut interest rates by a quarter point Thursday, looking beyond the election results to continue easing borrowing costs on the back of cooling inflation. The US central bank sits just a short walk from the White House, where Democratic President Joe Biden will soon hand back the keys to Donald Trump following the Republican’s election win.

Despite the political whiplash, analysts expect Fed policymakers meeting in Washington this week to eschew any drama. After hiking interest rates to a two-decade high last year in a bid to control runaway inflation, the Fed recently began lowering its key lending rate again, cutting by half a percentage-point in September and signaling more to come.

US Fed Meeting Live: Slightly more Americans apply for unemployment benefits; layoffs remain at low levels

The number of Americans applying for jobless aid ticked up last week but layoffs remain at historically low levels. The Labor Department reported Thursday that jobless claim applications rose by 3,000 to 221,000 for the week of Nov. 2. That’s fewer than the 227,000 analysts forecast.

The four-week average of weekly claims, which softens some of the week-to-week fluctuations, fell by 9,750 to 227,250. Weekly applications for jobless benefits are considered representative of US layoffs in a given week.

Continuing claims, the total number of Americans collecting jobless benefits, rose by 39,000 to 1.89 million for the week of October 26. That’s the most since late 2021. The Fed is expected to announce later Thursday that it has cut its benchmark borrowing rate by another quarter point.

US Fed Meeting Live: US weekly jobless claims increase moderately

The number of Americans filing new applications for unemployment benefits rose marginally last week, suggesting no material change in labor market conditions and reinforcing views that hurricanes and strikes had resulted in job growth almost stalling in October. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 221,000 for the week ended Nov. 2, the Labor Department said on Thursday. 

US Fed Meeting Live: Stocks rise, Treasuries under pressure as Trump impact weighed

World stocks gained on Thursday, a day after US shares hit record highs, and US Treasuries remained under pressure as investors processed a second Donald Trump presidency and awaited a Federal Reserve policy decision.

Europe’s broad STOXX 600 index was last up 0.7 per cent after Asian shares gained earlier in the day, with even onshore Chinese blue chips rising three per cent as investor optimism over potential stimulus outweighed concerns about worsening trade tensions.

US stock futures were last up 0.2 per cent after all three major Wall Street indexes surged to all-time peaks on Wednesday on the possibility of a Republican sweep that could quickly usher in big fiscal spending.

US Fed Meeting Live: Powell faces tough test after Donald Trump’s victory

S equity futures maintained their post-Election Day gains and the US dollar eased as traders continued to map out Donald Trump’s return to the White House and what it holds for the Federal Reserve’s interest-rate path.

Later today, Fed Chair Jerome Powell will face a tough test as a second Trump term sparks concerns over inflation. Officials are expected to lower rates by 25 basis points, a move that will come on the heels of the half-point cut in September. Traders are currently betting on about 100 basis points of Fed cuts by September 2025, compared to 110 basis points on Tuesday.

US Fed Meeting Live: US GDP print in Q3

The US economy grew solidly in the third quarter, with consumer spending increasing at its fastest pace in 1-1/2 years and inflation slowing sharply, continuing to defy recession forecasts. The US gross domestic product (GDP) increased at a 2.8 per cent annualized rate in the third quarter. The world’s largest economy grew at a three per cent pace in the April-June quarter.

US Fed Meeting Live: US inflation in September

US consumer prices rose slightly more than expected in September amid higher food costs, but the annual increase in inflation was the smallest in more than 3-1/2 years. The consumer price index increased 0.2 per cent in September after gaining 0.2 per cent in August. In the 12 months through September, the CPI rose 2.4 per cent, the smallest year-on-year increase since February 2021 and followed a 2.5 per cent advance in August.

Excluding the volatile food and energy components, the CPI increased 0.3 per cent in September after rising 0.3 per cent in August, pointing to some stickiness in inflation. In the 12 months through September, the core CPI advanced 3.3 per cent after gaining 3.2 per cent gain in August. Economists see the core gauge as a better indicator of underlying inflation and future inflation trends than the overall CPI.

US Fed Meeting Live: How does a US Fed rate cut benefit the economy?

A rate cut could lower borrowing costs, including for mortgages and business loans, giving individuals and companies the incentive to spend and invest. “Fed’s actions will have a direct and swift impact on the economy compared to the potential long-term effects of the election, where legislative changes could take months to unfold,” said Nigel Green, CEO of financial advisory firm deVere Group.

In September, the FOMC voted 11 to 1 to lower the federal funds rate after holding it at over a two-decade high for more than a year. It was the US Fed’s first rate cut after four years. The central bank maintained the key borrowing rate elevated at the 23-year high for 14 consecutive months since July 2023 to combat the worst inflation outbreak in almost 40 years.

US Fed Meeting Live: FOMC to conduct policy decision after US election results

The US central bank will conduct its two-day Federal Open Market Committee (FOMC) meeting amid the high-stakes US Presidential Election results in 2024, seen as the “closest race” to the White House for the Presidency in the nation’s electoral history. Republican candidate Donald Trump won the electoral verdict with over 270 votes and swept major swing states to officially become President-elect.

US Fed Meeting Live: Powell-led FOMC to unveil seventh policy decision for 2024 on November 7

The US Federal Reserve is set to announce its new interest rate decision on Thursday, November 7, after a two-day FOMC meeting. US Fed chair Jerome Powell-led rate-setting panel is widely expected to reduce the benchmark policy rate for the second time in four years.

The estimates were cemented after the latest government data revealed that US inflation cooled for the sixth straight month in September 2024, giving a major boost to Wall Street’s bets on the US Federal Reserve’s definite 25 bps interest rate cuts.